What is household rate?
The household flat rate is part of the credit check at banks and depends on the number of people in a household and the resulting expenses. As a rough guideline, the household flat rate provides information about the costs of housekeeping. It serves as a criterion for banks to grant loans and is a means of checking creditworthiness.
want to build and this requires construction finance. As a guideline, the household flat rate is used to determine the approximate costs of running the household of the borrower and his family.
With the additional calculation of the income, the bank tries to determine up to which amount the loan installments can still be serviced by the debtor and whether this is sufficient for the repayment of the loan.
Household calculator can only result in an approximate amount.
Here is a household flat rate table, which shows which expenses are included.
- Broadcasting fees
- Newspaper subscription
- Car costs
The banks set their own lump sums as minimum rates, depending on the number of people in the household. Children are also included in the amount.
About construction loan or a mortgage loan
If you need a construction loan or a mortgage loan, you should work out what financial cushion you still have after deducting all your expenses per month before talking to your bank. It is also advisable to find out about the household flat rates set by the bank. They are minimum rates and only serve as a guideline. Nevertheless, the banks look at this value.
The flat rate provides information about the cost of living for a person or family. If these costs are so high that there is little or nothing left of the salary, even a permanent and well-paid position can usually not tempt the banks to grant a loan.
So if, after deducting all budgeting costs, there is very little financial scope, the risk is high that the bank will reject the loan application. You can of course try to prove that you can get the flat rate, but lenders are usually open to that.
- When it comes to a real estate loan that causes high costs over many years, you should not overestimate your own funds. If it turns out that it could become scarce, it is advisable to postpone the plans from your own home.